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  • November 23, 2009 at 8:54 AM #486612
    sdrealtor
    Participant

    To the contrary i have seen at least 50 approval letters and many are intentionally vague and ambiguous on purpose. We find it very difficult to figure out the intentions of the lender though we suspect it is to keep their options open down the line. If it does not say the lender agrees to accept the proceeds as full and final satisfaction and agrees to forego deficiency right it is ambiguous. I have seen letters some felt were clear only to have the lender come after the seller after the short sale closes. Sometimes we get them and explain the risks to the seller then let them decide what they want to do. We recently had a non recourse 2nd try to go after a client after issuing a good but not perfect release. Ironically it was PNC (though a different lender under the PNC umbrella). After some legal letters explaining the case law we had on our side they have agreed to drop the matter.

    November 23, 2009 at 8:58 AM #485766
    sdrealtor
    Participant

    CE
    In general it makes legal sense if you have your original purchase money loans (never refinanced)which are non-reocourse or if you have only one loan which you can get protection under the one-action rule. It’s quite a bit more complex than that but that is the general jist of it.

    Beyond that there are personal and financial considerations. For example, if you are a business owner even though your FICO scores can come back, a foreclsoure will show up on your credit history and will impact your future access to capital among other things.

    November 23, 2009 at 8:58 AM #485934
    sdrealtor
    Participant

    CE
    In general it makes legal sense if you have your original purchase money loans (never refinanced)which are non-reocourse or if you have only one loan which you can get protection under the one-action rule. It’s quite a bit more complex than that but that is the general jist of it.

    Beyond that there are personal and financial considerations. For example, if you are a business owner even though your FICO scores can come back, a foreclsoure will show up on your credit history and will impact your future access to capital among other things.

    November 23, 2009 at 8:58 AM #486308
    sdrealtor
    Participant

    CE
    In general it makes legal sense if you have your original purchase money loans (never refinanced)which are non-reocourse or if you have only one loan which you can get protection under the one-action rule. It’s quite a bit more complex than that but that is the general jist of it.

    Beyond that there are personal and financial considerations. For example, if you are a business owner even though your FICO scores can come back, a foreclsoure will show up on your credit history and will impact your future access to capital among other things.

    November 23, 2009 at 8:58 AM #486393
    sdrealtor
    Participant

    CE
    In general it makes legal sense if you have your original purchase money loans (never refinanced)which are non-reocourse or if you have only one loan which you can get protection under the one-action rule. It’s quite a bit more complex than that but that is the general jist of it.

    Beyond that there are personal and financial considerations. For example, if you are a business owner even though your FICO scores can come back, a foreclsoure will show up on your credit history and will impact your future access to capital among other things.

    November 23, 2009 at 8:58 AM #486622
    sdrealtor
    Participant

    CE
    In general it makes legal sense if you have your original purchase money loans (never refinanced)which are non-reocourse or if you have only one loan which you can get protection under the one-action rule. It’s quite a bit more complex than that but that is the general jist of it.

    Beyond that there are personal and financial considerations. For example, if you are a business owner even though your FICO scores can come back, a foreclsoure will show up on your credit history and will impact your future access to capital among other things.

    November 23, 2009 at 9:24 AM #485784
    prep2buy
    Participant

    don’t you get a reduction in state tax owed as well? When I ran numbers with a tax program the fed and state was reduced…

    November 23, 2009 at 9:24 AM #485951
    prep2buy
    Participant

    don’t you get a reduction in state tax owed as well? When I ran numbers with a tax program the fed and state was reduced…

    November 23, 2009 at 9:24 AM #486325
    prep2buy
    Participant

    don’t you get a reduction in state tax owed as well? When I ran numbers with a tax program the fed and state was reduced…

    November 23, 2009 at 9:24 AM #486412
    prep2buy
    Participant

    don’t you get a reduction in state tax owed as well? When I ran numbers with a tax program the fed and state was reduced…

    November 23, 2009 at 9:24 AM #486639
    prep2buy
    Participant

    don’t you get a reduction in state tax owed as well? When I ran numbers with a tax program the fed and state was reduced…

    November 23, 2009 at 11:20 AM #485799
    SD Realtor
    Participant

    sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

    The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

    November 23, 2009 at 11:20 AM #485966
    SD Realtor
    Participant

    sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

    The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

    November 23, 2009 at 11:20 AM #486340
    SD Realtor
    Participant

    sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

    The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

    November 23, 2009 at 11:20 AM #486426
    SD Realtor
    Participant

    sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

    The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

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